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Operations and Supply Chain Management The Core

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QUALITY MANAGEMENT AND SIX SIGMA chapter 10 339

LO10–5 12. Discuss the purposes of and differences between p-charts and ​ ¯ X ​- and R-charts.

13. The application of control charts is straightforward in manufacturing

processes when you have tangible goods with physical characteristics you

can easily measure on a numerical scale. Quality control is also important in

service businesses, but you are generally not going to want to measure the

physical characteristics of your customers! Do you think control charts have

a place in service businesses? Discuss how you might apply them to specific

examples.

LO10–6 14. Discuss the trade-off between achieving a zero AQL (acceptable quality level) and

a positive AQL (such as an AQL of 2 percent).

15. The cost of performing inspection sampling moves inversely to the cost of

quality failures. We can reduce the cost of quality failures by increased levels

of inspection, but that of course would increase the cost of inspection. Can you

think of any methods to reduce the cost of quality failures without increasing a

company’s cost of inspection? Think specifically in terms of material purchased

from vendors.

OBJECTIVE QUESTIONS

LO10–1 1. What is the name of the national quality award given by the government of the

United States?

2. Match the quality “guru” with the specific aspects of their teachings. Use C for

Crosby, D for Deming, and J for Juran.

Defined quality as “fitness for use.”

Defined quality as “conformance to requirements.”

Set the performance standard as “zero defects.”

Defined 14 points for management to follow.

Emphasized a general management approach to quality, especially the

human elements.

Rejected the concept of statistically acceptable levels of quality.

Stated that less than 20 percent of quality problems are due to workers.

Recommended continuous improvement to reduce variations.

3. What is the term that means making the person who does the work responsible for

ensuring that specifications are met?

4. What are the four general categories of quality costs?

5. What term means managing the entire organization so that it excels on all

dimensions of products and services that are important to customers?

LO10–2 6. Which international standard has recently been developed to address the socially

responsible behavior of firms?

7. Which industry-specific standard has been developed by automakers for suppliers

of parts, materials, and services to the automotive industry?

8. What is it called when a firm looks externally and examines other companies for

examples of best practices?

LO10–3 9. A manager states that her process is really working well. Out of 1,500 parts, 1,477

were produced free of a particular defect and passed inspection. Based on Six

Sigma theory, how would you rate this performance, other things being equal?

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